Concho Resources Looks Set to Rally

Concho Resources  (CXO) has been in a sideways trading range since August, finding buying support around $125 and selling resistance up around $145. The price action looks more like accumulation in my opinion, and it should lead eventually to new highs above $145. Some market observers might consider the $140-$145 area on CXO as resistance and they would be correct, but that is slight in comparison with the support found in the $130-$125 area. Like water, prices typically take the path of least resistance.

Chart "reading" is just part of the process, so let's not forget the information we can glean from volume and the various indicators. Let's check the daily and weekly charts....202 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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